VIX-COR3M Breakdown Predicts Bitcoin Volatility Spike

Bitcoin volatility is expected to rise in the coming days as the correlation between the VIX and COR3M indices breaks, signaling elevated BTC markets. This conclusion was reached by analyzing the trend of S&P 500 volatility compression mirroring Bitcoin's volatitily.

MarketMike data shared by André Dragosch shows that when the VIX-COR3M 20-day correlation breaks, it has preceded sharp VIX spikes in prior instances.

The data suggests that despite S&P 500 and BTC volatility tracking closely, internal divergences are now signaling higher volatility ahead for BTC markets.